PROBLEM-SOLVING

At the end of this course delegates will be able to assess the cost and quality implications of given commercial decisions. In particular the course is designed to enable delegates to:

  • Develop and work to business plans

  • Apply cost-benefit analysis techniques

  • Undertake unforeseen event analysis

  • Undertake 2nd, 3rd, 4th order effect analysis

  • Develop a detailed understanding of the business environment in which they operate

  • Factor-in a range of costs, as appropriate, for given projects

  • Make valid comparisons between leasing and purchase

  • Make valid comparisons between in-house provision and contracting/outsourcing

  • Reduce inventory costs

  • Manage replacement life-cycles

  • Understand the HSE cost implications of given decisions

  • Build fit for purpose solutions and avoid over-engineered approaches

Duration: 2 days

(Sessions will be supported by worked examples therefore it is assumed that sessions will last 1 ½ - 2 hours.)

DAY ONE

Session One

Course overview. Industry-wide examples of good and bad practice at macro and micro-levels.

Session Two

Examples of best practice from within the company– identification of success factors. Review of problem projects – identification of negative factors. Other local contributing factors.

Session Three

Cost-benefit analysis techniques; definitions of costs within the context of specific activities and projects: maintenance, support, training, space costs, utilities costs, security costs; defining the life-cycle/replacement cycle; critical timing of a given spend/purchase; fit for purpose solutions; scoping the requirement.

Session Four

Using unforeseen event analysis to identify potential problems and possible costs for given activities and projects. Use of SWOT analysis, mind-mapping, Ishikawa diagrams.

End of Day One

Problem Solving, continued …

DAY TWO

Session Five

Using 2nd, 3rd, 4th order effect analysis to generate potential unplanned outcomes of specific initiatives and activities. Factoring-in potential costs and building cost-effective solutions. Factoring-in HSE impact and potential downside costs.

Session Six

Costing techniques to achieve accurate budgeting for re-scheduling, accidents, unforeseen events and collateral effects. Lease versus purchase; in-house provision versus outsourcing. Factoring-in inventory costs and managing JIT.

Session Seven

Large project exercise: delegates have a choice of exercise appropriate to their area of responsibility and are required to use all the analytical tools presented on the programme.

Session Eight

Communicating best practice to own team; developing best practices across departments. Understanding the cyclical nature of oil industry economics and oil price impact.

Session Nine

Feedback to delegates from the tutor in brief individual tutorials. Review of work. Course review; action plans.

End of Course